Adesoji Adegbulu

Nigeria, 2nd Fastest Growing Key Emerging Economies in 2014

Looking at the world’s 25 largest key emerging economies and emerging markets, ranked by GDP in PPP terms, the five fastest-growing include some usual suspects (China and India) but also some more surprising entrants – particularly Nigeria and Bangladesh. 2014 should see relatively strong growth for these five economies – albeit in some cases weaker growth than in recent years – but as ever, all face important challenges.


Nigeria in Second Place but with Serious Underlying Economic Concerns

Nigeria is, perhaps surprisingly, expected to be the second-fastest growing major emerging market this year. We expect the economy to expand by 6.6% in real terms in 2014. One of Nigeria’s chief advantages is its large current account surplus, which stood at US$11.8 billion or 4.0% of GDP in 2013.

Tighter monetary conditions and uncertainties over the flow-on effects of these on emerging markets may affect the Nigerian economy adversely this year however because Nigeria has received relatively large inflows of foreign capital. The economy also remains over-reliant on energy, and diversification is a priority – not least because of high unemployment. Conflict in the north is also a key concern.

Source: Euromonitor International from national statistics/Eurostat/OECD/UN/IMF